All Forum Posts by: Reid Beckers

 Thanks James, appreciate the reply.

 Hi @Tracy Keffer thanks for connecting. We are still shopping around so if you have a chance please send that over. Much appreciated! 

Hi all,

Looking for recommendations or successful personal experiences with investor friendly lenders in the Ohio/Columbus area. Would like to find financing options (DSCR/Traditional) for a cash purchase i've renovated and are looking to hold long term. If you have had a good experience please let me know.

Hi all,

We purchased SFH In Columbus, Ohio. Since we are out of state, we need someone to observe the minor renovation progress.

What would be the average daily rate for hiring a renovation project manager to check on the progress and ensure that contractors are doing their job properly? We have someone and I'm thinking of starting at $50 per visit for this role. What are your thoughts on this amount? He has done several times in the past with someone else.　Before finalizing the deal, I'd like to get some opinions on whether this amount is too low or too high.
The renovation projects are minor ones, such as painting, window work, kitchen renovations, some repairs and corrections that do not require permits.

Thank you!

Thanks everyone. The BP forums once again provide a great example of community. The feed back was all constructive and helpful and I know comes from a place of true encouragement.

That said, we've submitted an offer this week and 2 other's lined up. *Knocks on wood*

 Hi Drew, 

Thanks for so much for responding. Everyone has had great feed back!

Yes, we're definitely putting in the hours on underwriting. However, my point wasn't really about the offer or what the acquisition price is. It was from the frustration that those prices really didn't even matter. The only thing that seems to matter is that rent can cover the refi. And how even getting full equidy out of the ARV value counts for nothing if the rent is $1100 but the new mortgage is $1200. I could buy a house for $10, renovate it and have it appraised for $200k but if it only rents for $1000 and the expenses are over that it's a bad BRRRR deal? That just doesn't make sense. I feel I'm missing something. I have no money left in the deal but still underwater. ??

Yes, in this example I realize the strategy would be to sell as a flip but is just an example. Anyway, appreciate you're feedback. 

I’ll try to keep this post simple, if not short.

My wife and I have been educating ourselves, listening to RE podcasts, reading books and BiggerPockets. We have some savings and a Pre-approval letter ready and we also opened a HELOC. We are ready to buy.

Looking for BRRRR opportunities in Columbus OH area. (ARV value $100k to 250k) We've checked many, many, numbers over the last year… numbers always come out negative and nothing seems to work when we try and get money out to recycle.

Basically, I’ve come to realize that nothing matters unless the rent is high enough to cover the cash-out-refi loan amount at the end of the project. It’s great if your property appraises 100k over asking but if rent doesn’t cover the refi and expenses, what’s the point? This always kills our deals and seems VERY difficult to make happen even though numbers work before the refi and can even be greater than a 1% deal if we leave $$$ all in

I hope we're just missing something here cause what I'd like to know is, what does it matter if we can get all our money out and the ARV comes in over and above our money in, if we can't get positive monthly cash flow???

Example:

Purchase price: 75,000

Renovations: 50,000

Total in = 125,000

Appraisal: 200,000

Refi out @ 70% = 140,000

All the money out plus $15,000

But still negative cash flow cause rent only gross’s $2,000.

Monthly expenses:

Loan @ $950

Insurance @ $100

Taxes @ $150

Water @ $300

Vacancy @ $125

Property management @ $225

Cap Ex @ $175

Repair & maintenance @ $100

Total = $2125

-$125 cash flow

I know I could take the equity and sell. I know I could look longer term and wait till rent appreciates, but we don’t want to be flippers and can’t watch money go out the door for a few years if we are going to try and get more properties. And at minimum, it seems that we are doing something fundamentally wrong if we can’t make it work!!

Are we looking for a property in a wrong area? Are the MLS listings prices to high? Are we being too conservative? Should we only be looking for Off market deals? We hesitate since it's our first investment.

People’s first brrrrr success stories seem outside reality to us.

What are we missing? Any advise for newbies like us?

TIA!

Hi All,

Have a question for the forum and looking for some suggestions or insight on our issue. We are eager to start the REI journey and especially looking at using the BRRRR method for our first deal.

I have a W2 job, and still about $85K in student loan debt. My wife is self-employed and we normally make about the same amount yearly. However, her income declined greatly in 2020 due to covid, and using her 2020 and 2019 tax returns our lenders have told us our current DTI is too high for pre-approval (at around 50%). We've tried several different lenders (about 5 in total) but all come back with a version of the same answer. Currently, we are looking at deals in the Midwest at prices not higher than 200k, and our normal income would be more than enough to cover these deals. Indeed, we could purchase some we've seen for cash but our goal is to use as little money as possible of our own and of course to recycle it over an over.

We are faced with a decision, as we have plenty saved for a down payment, along with money for repairs or capital expenditures and holding costs. We could pay off my student loan in full right now, but it would deplete much of what we have saved for investing. We’re trying to figure if paying down the debt is the highest and best use of this money or if there is another option we are overlooking that keeps our money in hand and allows us to move forward with lenders where we can get cash out at the end of our deals.

We’ve already considered a co-signer for our deals but wanted to see what the forums have to say first. However, if the co-signer is the best option, has anyone had experience with compensating their co-signer? Thanks in advance!

Hey there... did this get off the ground? My covid obsession has been golf and as a newbie I'm very interested in a chance to have interaction of any kind with like minded and more experienced investors. In Los Angeles.

Hope this finds you all well. I am new to the BP website but have been loving all the content and the podcast back catalog. My wife and I are beginning the journey of real estate investing. We a have been working on building our knowledge and education to prepare to start investing. However, I'm finding that keeping our knowledge base equal has been difficult. While I have been gobbling up every book mentioned in the podcast my partner will pick up only about 50% of English audio books. 

While at first this was useful in cementing the knowledge for myself, as I discussed it in greater detail. She is growing more and more frustrated at my translations and seeing me progress while she lags behind.

I've made many attempts to search the internet for specific Japanese Audio books on RE investing but not much has come up. Indeed nothing so far.

Hoping the forum might be able to help. Looking mostly for "foundational learning" books. Thank you!